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Are Investors Undervaluing Pitney Bowes (PBI) Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One stock to keep an eye on is Pitney Bowes (PBI - Free Report) . PBI is currently sporting a Zacks Rank #1 (Strong Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 8.78. This compares to its industry's average Forward P/E of 9.58. PBI's Forward P/E has been as high as 18.96 and as low as 6.30, with a median of 8.11, all within the past year.

We also note that PBI holds a PEG ratio of 0.59. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. PBI's industry currently sports an average PEG of 0.65. Over the past 52 weeks, PBI's PEG has been as high as 1.26 and as low as 0.42, with a median of 0.54.

These are only a few of the key metrics included in Pitney Bowes's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, PBI looks like an impressive value stock at the moment.

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